GlaxoSmithKline to Take $3.4 Billion Charge on Avandia

The Associated Press reports that GlaxoSmithKline PLC said Monday it will take a $3.4 billion charge against earnings in the fourth quarter to provide for litigation over its diabetes drug, Avandia. The company said the charge is due mainly to additional costs related to the investigation of the company''s sales and promotional practices by the U.S. Attorney for Colorado. In September, European regulators ordered Avandia off the market and the U.S. Food and Drug Administration restricted its use in the United States because of evidence that the drug increased the risk of heart attacks. The charge is in addition to a charge of $2.4 billion announced in July. The company said it has continued to receive new claims.